A pvt.ltd had purchased chemicals from B P LTD. as under in maech,12
basic 10 lacs c.e. 1.236 mvat 0.56 total 11.796
the company did not find material in order,therefore sent it back to supplier for repocess/rectification & passed debit not for Rs.10 lacs (without reversal of cenvat)
in first week of April,12,supplier (B p ltd.) repocessed & sent the materail to A pvt.ltd.Therefore A PVT.LTD. reversed the debit note.
THE SUPPLIER (B P LTD) did not pass any entry in his book.
Since, A pvt. ltd has not reversed the cenvat while sending the goods for reprocess/rectification, is there any penal consequence under Excise law?
25 August 2012
remove debit note from accounts, and such materials sent would be in stock as "sent to job worker for processing" old rule 57F(4) as the yearend comes in between , if debit note exists, then it would be purchase return and you have to reverse all credit taken with interest before 31st march 2012
CAclubindia
